They are both games set within the same universe. They are being developed by 2 different teams. FF13 will play more like a traditional FF game whereas FF vs XIII will more of an action RPG. Its being developed by the Kingdom Hearts team. Vs XIII is supposedly going to push away from the light magical aspects and take on a more realistic approach. Its also supposed to have a dark setting

They both take place in seperate world, actually. The idea of the FFXIII projects is how the power of the Crystals (throwback to classic FF) influenced different worlds/realities.

FFXIII is being done by the FFX team and will be more of a 'traditional' FF. THough they have said that with FFXIII, they are trying to make a combat system closer to the visuals in Advent Children.

Final Fantasy Versus XIII takes place in 'the real world', but a stylized 'real world' obviously. It's like the PSX FF take on modern day. It's much more of an action RPG and is being headed by the Kingdom hearts team and lead by Tezuo Nomura (the main artist of the FF series).

THey're two seperate games, with two seperate stories, tied together by the fact that the power of the crystals have influenced their world.

Versus is darker, and more 'real world', it's like Advent Children in a way.

After a lengthy drought, Square Enix has released some new information about its second Final Fantasy XIII title, Final Fantasy Versus XIII for PlayStation 3 in this week's edition of Weekly Famitsuu. The magazine article for the first time shows the game's heroine: A dark-blonde girl, whose name and age the developers chose to keep a secret for the time being. Her destiny and great power will apparently contribute to the story's dramatic development. She carries a rapier-like sword and similar to the protagonist can send her sword flying towards a foe. While the protagonist is known to be able to send dozens of swords towards his opposition and beam himself to a position where he had previously thrown his weapon to, it is unknown at this point, whether the heroine will possess a similar set of abilities. Interestingly enough, the newly released screenshots show the protagonist and heroine face off against each other between skyscrapers. Square Enix reconfirmed that the protagonist is the heir to his country's throne. In this role he is tasked to protect the sole remaining Crystal.

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Originally Posted by rpgfan.com

In addition to the heroine, the article also introduces its readers to three more characters. First is a blonde guy, who is described as the mood maker of the group. Despite a country-wide ban on guns, the young man is carrying one. The second character introduced in today's update has a scar running across his face and is introduced as an older brother figure. Meanwhile, the third character, who is wearing glasses, is described as laid-back. All three are friends of the protagonist and enter the limousine shown in the game's trailers together with him. They first head via expressway to a government building which hosts the Crystal. Black smoke is rising from the building, suggesting it has come under attack by the invading army. Other scenes however, show the group of four trying to escape. A seemingly destroyed road ends their escape in a desert-like environment. Famitsuu speculates the main means of transportation in Final Fantasy Versus XIII will be cars. The aforementioned limousine is carrying a Chocobo logo, even though the existence of actual Chocobos in the game has yet to be confirmed. Furthermore, the article introduces the governing council of the protagonist's country. The council convenes in a room that is seemingly modeled after a church. Its chairperson sits on a throne-like chair. It is unknown whether he is the king, but because his eye color matches the protagonist's, Famitsuu speculates that the two are in fact related. This chairperson makes a decision regarding the Crystal, even though the reader is not told exactly what has been decided by the council. The development team has modeled various areas in the game after real locations, such as Venice's Piazza San Marco or the area around the Tokyo Metropolitan Government Building in Shinjuku.

Since the FFXIII thread has been split off adn moved to the multiplatform board, I thought I'd resurrect this thread. Here are some new scans of Vs XIII

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Final Fantasy Versus XIII (PS3):

-There are four pages pertaining to Versus XIII. There are around ten screens in real time.
-The people living in the world of Versus XIII worship a Shinigami (Gods of Death. Shinigami might be familiar to those that watch the Death Note Anime Series.)
-The Shinigami is designed by veteran series artist Yo****aka Amano.
-The cars and clothing seen in the trailers so far will probably change in design by the time the game is complete.
-The team's morale is really high! (Yay!)

Looks quite interesting. I'm looking forward to Versus more than XIII because I want something different from the FF universe. And it seems Versus will be able to deliver. I've always like more mature plots =) Oh, and nice find Havok. I have high hopes for these projects.

At first I wasn't interested in vs., however I'm slowly wanting it more. FFXIII itself is being delayed, after finishing the PS3 version then they will work on the 360 port, and they won't release the PS3 version until the 360 version is done. That could add a substantial amount of time to a game that still has a long time until release. So I'm hoping with vs. being developed for one console they allow it to be released when finished as it's looking like it may come out first.

I like the idea of a more traditional RPG with XIII, but vs. looks to have the better story. XIII is looking like a straight rip from VII, and I've played VII soooo many times I'm not looking forward to a cloned story of it. Vs. on the other hand seems to be more original, and I like that it's more mature and in a more real world almost Advent Children setting.

It's funny, the game I was looking forward to is getting to the point where I could care less for it, and the game I was going to pass over is the one I'm looking forward to.

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Im more of an action fan so thats why this is appealing to me since its being made by the Kingdom Hearts team. A FF game made with that gameplay is going to be lots of fun. Unforutnetly I dont expect this till at least 2010 which means we are 2 years off. I only wish we had more details. Im glad to see some progress is being made.